A “For Sale” sign outside a home in Crockett, California, USA, on Wednesday, November 12, 2025.
David Paul Morris | Bloomberg | Getty Images
Mortgage rates fell for the third week in a row, increasing demand from both homeowners and homebuyers. The housing market in the spring seemed to be a disappointment, but now there seems to be new life.
According to the Mortgage Bankers Association’s seasonally adjusted index, total mortgage application volume increased 7.9% last week compared to the previous week.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $832,750 or less decreased from 6.42% to 6.35%, with points for loans with a 20% down payment decreasing from 0.62 to 0.61, including the origination fee.
“Mortgage rates declined last week as financial markets reacted positively to the Middle East ceasefire and the lower trend in oil prices,” said Mike Fratantoni, MBA senior vice president and chief economist, in a news release.
Mortgage applications to purchase a home rose 10% this week and were 14% higher than the same week a year ago. This came after buyer demand briefly fell below last year’s levels. The increase was led by conventional purchase loans, which increased 11% for the week.
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“Despite the geopolitical uncertainty, real estate demand is supported by a still-robust labor market and homebuyers are experiencing a buyer’s market in most parts of the country given higher inventory levels compared to last year,” Fratantoni said.
Refinance demand, which is most sensitive to weekly interest rate movements, rose 6% this week and was 52% higher than the same week a year ago. At this time last year, the 30-year fixed rate was 55 basis points higher.
Mortgage rates rose slightly earlier this week but remain volatile amid mixed signals from President Donald Trump on the war with Iran, according to a separate survey by Mortgage News Daily.
“There was some upward pressure on interest rates due to better employment data in the morning [Tuesday]“but the market became even more focused on the uncertain status of the U.S.-Iran peace talks,” wrote Matthew Graham, chief operating officer at Mortgage News Daily.
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